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How fishy is this? Selling to the 2 largest share holders. "MTI announces that it was informed on 21 November 2023 that .
...." do they mean the company didn't know what it was doing with it's own shares?
This isn't governed by UK T/O code
Israeli T/O Code should be sensible, I guess......but the little I've read suggests 25% is a key threshold (and MA are way over that)
Seems like they have been buying them up and selling for less ( moderately not hugely. ) for a while.
You’re right bigDave. What are we missing ?
16 aug 325k of shares in treasury
5 sept: sold them all for 44p but no disclosure as to whom
I expect most missed that one !
The Transaction in Shares RNS's report that MWE paid more for the Treasury shares than the sale price recouped. What am I missing here?
Why can a shareholder go over 30% and not be forced to make an offer?
could they t/o on the cheap??
Reaction to todays RNS!
Worth a flutter I think
Shore.s new target price is 80p and Allenby Capital's is 75p, both reduced slightly due prinarily to the weak shekel but showing substantial upside against the current 36p share price.
Both Shore and Allenby are now forecasting 4.2c EPS this year, i.e 3.39p EPS, so a P/E of 10.6.
They both forecast just over $8m net cash, i.e 7.4p per share, so the ex-cash P/E is only 8.4.
Next year's forecasts are both now around 4.3c EPS having been pared slightly mainly due to the currency fluctuations.
The tone of today's RNS and the 3.25c EPS already achieved to Q3 suggests to me that this year's forecasts may be beaten, especially since the shekel has recovered quite nicely since late October against the dollar. Still, better to underpromise and overdeliver.
Positive!!
What and informative post and so poditive.
10p target?
A very reassuring Q3 update, especially given the now £28m m/cap:
- EPS up 9% to 3.25c, i.e around 2.7p, with the strong Q4 still to come
- the cash pile now up to $6.4m
- Q4 is going well due to increased Govt spending in both Antennas and MTI Summit
- demand and trading is overall unaffected by the war, as are internal infrastructure, imports/exports or the 40% of the workforce outside Israel
- global demand for military antennas is strong
- Mottech is solid with a promising pipeline, whilst Summit is now profitable and has a strong pipeline
I susppct that Shore's forecast of 4.2c EPS now stands a good chance of being beaten given the 3.25c EPS to date.
And the 3.2c forecast dividend is now around a 9% yield at the current share price.
The problem with this war risk is that the extent/effect is hugely uncertain
it's not the war risk to which NATO is exposed in UKR/RUS war...negligible (and only really the tiny tail of nuke catastrophe risk)
The Arab States may feel obliged to invade again; Iran may unleash its proxies...who knows
Strange not to mention the war in broker updates and for the company itself not to release a quick statement. One would assume that there is therefore no material affect on the business. Ultimately there will be an affect on the business whether it be good or bad and it should really have been communicated in my view to be as clear as possible.
And, Wakeyinvestor the war is still going strong, I think you were being a little optimistic with your prior comments.
Another broker who doesn't even mention war risk??????
MWE should see a benefit this year in direct trading/translation terms from the decline in the shekel against the dollar, since the rate has fallen from around 0.29 in January to the current 0.26.
The defence-related side of the business should be doing pretty well.....hopefuly enough to offset any difficulties in terms of staff call-ups or component supplies etc due to the war.
Allenby Capital have a new summary out today:
"MTI Wireless Edge Ltd* (MWE.L, 33.5p/£29.6m)
Contract win: Military spend continues (07.11.23)
• Orders secured from the Israeli Ministry of Defense worth c. $1m over 14 months for the service and maintenance of surveillance platforms via MTI's Distribution & Professional Consulting Services Division (Summit/PSK).
• The contracts reflect the increase in military-related spending by the Israeli government and the company expects to receive additional defence-related orders for its radio frequency and antenna solutions in due course.
• No change to forecasts or 90p/share fair value, equivalent to an FY24 EV/EBITDA of 13.8x.
Allenby Capital comment: MTI benefits from its diversified business model with the core underpinning of comprehensive communication and radio frequency technology. The contract announcement demonstrates that spending continues in Israel, in spite of the very challenging domestic situation, and we anticipate further spend across the three divisions (Antennas, Mottech and Summit/PSK) both domestically and overseas given medium term growth drivers - increased defence spending, water scarcity and the ongoing 5G roll out. Balance sheet also remains strong with net cash of $6.2m, equivalent to 5p/share, at H1 that is being used to fund the progressive dividend and share repurchase programme. No change to forecasts or 90p/share fair value."
Remarkable effort by Shore
did they mention a war? or the call up? or the possibility of wider conflict?
Shore Capital have retained their 90p price target and current forecasts, with the Q3 update coming soon.
Defence-related work is likely to be prospering, and hopefully the water and antenna/5G divisions will be unaffected to a material degree.
If that's the case then MWE are extremely cheap based on:
- 4,2c forecast EPS rising to 4.7c EPS next year
- $9.2m forecast cash pile against the £30.9m m/cap
- 3.2c dividend, i.e a 7.5% yield
Shore conclude:
"Outlook and valuation: In the note that accompanied the FY22A results in March 2023 we highlighted that each of the divisions has long-term growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. The Antenna division is likely to benefit from the rollout of 5G across the world, as and when it happens, as MTI already supplies seven of the top ten operators with its technologies. We would also expect to see continued good demand for Summit/PSK with its defence-related products and services as demonstrated by today’s news."
A $1m contract win for service and maintenance of surveillance platforms from the Israeli MOD:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/92476965
And more likely to come:
"This contract reflects the increase in military-related spending by the Israeli government and we anticipate that we will receive additional defense-related orders for our radio frequency and antenna solutions in due course."
Israel won't be in charge of event
The war will be in Gaza and possibly South Israel near the Gaza border. MTI should be unaffected and indeed the company has not considered it necessary to issue an RNS. Lots of cash, repeat contracts and new contracts and no debt, plus it pays a good dividend. A good recovery investment IMO
Thanks for that, uhm a bit worrying.
Its HQ, senior management and most of its infrastructure may soon be in the hottest of war zones
kinda challenging
Looking at the all the other countries thus company does business in, why so much of a drop.
Any ideas.
OK maybe not this week but certainly this month. Biden/Blinken “efforts” are mere window dressing. Israel will do what it considers necessary, the international community will be in uproar, but led by the Americans it won’t actually do anything and by the start of November everything will be back to “normal”, that is, until next time. Enjoy the SP bounce when it comes. The company hasn’t put out a statement because it doesn’t need to. I’ll have a look at BVC when the SP dips below 20p but it has had good contract news this week so the SP has held up so far